The in-licensing of fibroblast growth factor receptor (“FGFR”) inhibitor derazantinib in April 2018 marked a turning point for Basilea: it brought in a late-stage oncology asset with potential across multiple cancers, thus complementing earlier-stage pipeline assets BAL101553 (Ph II) and BAL3833 (Ph I). The demonstration of proof-of-concept in intrahepatic cholangiocarcinoma (“iCCA”), a rare cancer of the bile duct, paved the way for the pursuit of larger indications. A Ph I / II trial in urothelial carcinoma (“UC”) (the most common form of bladder cancer, “BC”) in combination with anti-PD-L1 Tecentriq is due to start in mid-2019E. In this research report, we take a deep dive into the FGFR inhibitor landscape to elucidate derazantinib’s potential positioning compared to other molecules in the same class. We conclude that the compound’s profile should allow it to capture at least 25% market share in each iCCA and UC. Since our forecasts only reflect limited value for derazantinib in iCCA, we see upside from adding sales in UC as we gain more clarity on the design of the pending Ph I / II trial. We maintain our OUTPERFORM recommendation and nudge up our target price (“TP”) to CHF108.
23 Apr 2019
Derazantinib has potential in iCCA and beyond
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Derazantinib has potential in iCCA and beyond
Basilea Pharmaceutica AG (0QNA:LON) | 0 0 0.0% | Mkt Cap: 605.3m
- Published:
23 Apr 2019 -
Author:
Brigitte de Lima, PHD CFA -
Pages:
24
The in-licensing of fibroblast growth factor receptor (“FGFR”) inhibitor derazantinib in April 2018 marked a turning point for Basilea: it brought in a late-stage oncology asset with potential across multiple cancers, thus complementing earlier-stage pipeline assets BAL101553 (Ph II) and BAL3833 (Ph I). The demonstration of proof-of-concept in intrahepatic cholangiocarcinoma (“iCCA”), a rare cancer of the bile duct, paved the way for the pursuit of larger indications. A Ph I / II trial in urothelial carcinoma (“UC”) (the most common form of bladder cancer, “BC”) in combination with anti-PD-L1 Tecentriq is due to start in mid-2019E. In this research report, we take a deep dive into the FGFR inhibitor landscape to elucidate derazantinib’s potential positioning compared to other molecules in the same class. We conclude that the compound’s profile should allow it to capture at least 25% market share in each iCCA and UC. Since our forecasts only reflect limited value for derazantinib in iCCA, we see upside from adding sales in UC as we gain more clarity on the design of the pending Ph I / II trial. We maintain our OUTPERFORM recommendation and nudge up our target price (“TP”) to CHF108.